Google’s search ad market share in the US is expected to drop below 50% next year, according to the research firm eMarketer
Google has maintained years of dominance in the $300 billion web search advertising market. But now, newer AI and social media platforms are disrupting the tech giant’s core business as TikTok and AI startup Perplexity (backed by Amazon founder Jeff Bezos) are gaining ground.
TikTok recently allowed ads based on users’ search queries, while Perplexity will soon introduce ads under its AI-generated answers.
Amazon is also a rising force, with more consumers starting product searches on its site rather than on Google.
Google’s search ad market share in the US is expected to drop below 50% next year, according to the research firm eMarketer.
TikTok anticipates its ad revenue to grow 38.1% in America this year, though it only holds 3.4% of the digital ad market.
Amazon is also expected to have 22.3% of the market this year, with 17.6% growth, compared with Google’s 50.5% share and 7.6% growth.
While still a leader, Google faces growing pressure from AI-driven technologies, social media platforms, and other competitors, leading advertisers to explore alternatives.
The search engine giant also faces a DOJ antitrust case focusing on its web advertising technology. The case alleges that Google maintains a monopoly over ad software on the buyer and seller sides.